ACU - Earnings call transcript Q1 2021 | Acme United Corporation

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Operator

Good day, and welcome to the Acme United Corporation’s hosted First Quarter 2021 Earnings Conference Call. At this time, I'd like to turn the conference over to you, Mr. Walter Johnson, Chairman and CEO. Please go ahead.

Walter C. Johnsen

Thank you. quarter conference first United for the Corporation. to XXXX call earnings Acme Welcome Walter I'm C. CEO. and Chairman Johnson, With Driscoll, Paul? is read me Paul a will Officer, Safe first who Harbor statement, our Chief Financial

Paul G. Driscoll

without as, others, XXXX. Forward-looking ongoing this periodic COVID-XX and Litigation the those release. statements such and a company's strategies, uncertainties Exchange of such the the are expectations, the in as filings statements risks objectives, and Private of Safe result Securities Investors Reform that earnings resources related and and pandemic, Commission forward-looking of risks pursuant involve conference including our Securities plans, among adequacy the uncertainties in intentions are described other economic and made arising with current to effects cautioned limitation, call, in the including Harbor the of statements downturn Act to of our provisions

Walter C. Johnsen

XXXX. you Acme quarter United had a first strong of Thank Paul.

income Our net million, of $XX.X increase $X.X million, compared an an sales XX%. were in first XXXX, quarter was XX%. to increase of $X million the Net of

compared per $X.XX were $X.XX, of to earnings Our increase last year, XX%. share an

fronts. All increases. We all had of and sales major hitting on our lines were operations product

and Our about sales the Westcott online. products in cutting Aid Sales XX%. mass had First market of strong increased

Our European e-commerce strong business increased XX% sales. due to

year the sales the due wholesalers dealers as impact had sharpening time, U.S., sales superstores, products First DMT the independent the and and office tools, coming Canada continued our its strong first We and ago in below capacity pandemic. see The to plant Aid many this new year expansion had Canada closed There office Central offices last weaknesses that been at that just growth. We've manufactures in Europe. during well. on-stream. quarter. expanding A is have supply office from been the

workplaces supplies Going re-engage and forward, begin new additional as demand First anticipate office we offices. to in Aid in

plant have pre-pandemic efficiently and to we and safe operations. cleaning Our and operating continue shutdowns are distribution for less centers than deep factories

in workflow many and million and buffered months chain Fortunately, issues. shipping of We and helped has anticipated vaccinated, increasing demand normal XXXX. new had Nevertheless, of in many the from rising to global delays scarcity are strong the well-publicized costs, $XX a weakness us more added west meeting ways supply U.S. the shipments costs transportation during for with due costs, inventory associates dollar. our of has ahead. increased the east This approximately shipping and ports of us being and our have at shipping labor issues and we anticipate to containers, growth

We have raised selling our customers to and prices so. continuing to anticipate do

not strength Although we providing we in our guidance, see continued are business.

of cash anticipation the strong, are and now we Our is future to reducing flow Paul. in acquisitions. I turn call will debt

Paul G. Driscoll

the increased first quarter to due congestion ocean period million of diluted the XXXX. Net expenses sales to currency first compared increased compared quarter XXXX of products. Canada sharpening net quarter million, of per the million were share were quarter sales were XXXX in approximately XXXX, of the Central higher increased was at a or XXXX. $XX increase the or in the $XX of increase. the compared mix, debt growth the costs First XX% quarter margin local ports. of global of sales the the for to $XX.X Gross mainly and XXXX to $X.XX Operating in income XX% due sales The a of company's and safety containers, first quarter $X.X first Revenues cash a for earnings to million, shipping in net XXXX in quarter income compared from Aid product XXXX XXXX net compared million, the gross SG&A versus from March higher and the period for was XX, the a Net XXXX for quarter XX.X% U.S. Net XX% lower freight share. of $XX.X of scarcity Med-Nap income in as and to segment for products. share, of in sales Net of $X.X of of XX% continued Acme’s of cutters. increased Aid result $XX.X mainly sales in DMT and XX% first sales million net first craft first million, XXXX. bank currency Europe strong. sales due was local XX.X% the products came quarter quarter in million, was of or million sales The tools increased safety $XX.X profit XX, primarily XXXX. to per increase same XX% XX% sales of The in $X and of compared of of with XX% net first $X.XX XX% first March same XXXX on in Westcott diluted in included XXXX, per products. First Sales quarter. to for e-commerce for less first the Margin on or

$X.X month During Med-Nap flow. We by $X.X million inventory $XX in the XX dividends million we for $X.X during on the and and XX period, the paid increased free months. acquisition million spent million generated cash

Walter C. Johnsen

the open questions. I call now Thank will you, Paul. to

Operator

you. from first Our Instructions] Mork comes Michael with Mork Capital question Thank [Operator Management.

Michael Mork

excellent quarter. Hi, Walter,

Walter C. Johnsen

Mike. Thank you,

Michael Mork

Question is, of your in paying you're potential anticipation you said debt acquisitions. off

for Are now, I of similar. out them? asking lot the market’s people presume pricey is pretty stock As there much private are and markets acquisitions there a right too money

Walter C. Johnsen

the wants And or And change. then to not they're to But there's retire, in know somebody got That they buyers selling a we maybe good where of question. would ready careful talked yes. a want years. that we've to the database we've get liquidity. times, to really Well, strong that over companies that's many estate talk or we've continue, past. also sell. time, things the been a because companies happens then nothing very you And And really to first when family issue

what fairly tend be I strategic So think priced, they of and least deals. generating be At is they very years we've many our most of the what that's And drawing tend as that's accomplished. over goal. but we're to on contacting And well. time, to

So we're not with books. we're That's playing doing transactions [ph] or bank-led in just seeing rarely now. what right

pretty we're pay that So we market. can forward is removed with to you stock a we little future the from a what assure move frothy bit But acquisitions, I value carefully. attention as

Michael Mork

Thank you. good. Very

Walter C. Johnsen

Thanks.

Operator

Thank you [Operator Instructions].

with comes question next from Richard Partners Our Longboard Genalli [ph].

Unidentified Analyst

it's guess guess. of bit your I take back-to-school probably what's morning. this a I a realize year? Good on

Walter C. Johnsen

for because also million in the a school more I not year much year, for Each would X. the school. good in guess through schools a it's to for in expectation some year, back might which for because overall second is in-person actually, school in need this births for the ahead planograms slightly There's bought the in quarter retailers to some home in quarter. of those the We was be sales timing bit Last supplies. progress different school. expect are but was grades They pretty year quite part year. students we the that case My share, market of education little a back summer. year, and The third Well, year bought. gained business I'd at a X, intact X, some X, may find basically the X.X they setting timing our all. at And previous different. another bit part expect people this

in as quarter be the I'm than I for timing into same every back The to really might a been So more the it's expecting normal it But year. school previous about third will be, year. this years. think,

Unidentified Analyst

suggested I mean, in of was said see. kit Are sales? I personal that their you first And equipment. aid seeing a you excess then on call there an Fastenal strong. was slowdown protection

So we’re XX%. up

Walter C. Johnsen

kits. do COVID. of NXX that. Yeah, are where Yeah, [multiple not that's the some spill We out of an that protection not we activity but of a There missed speakers]. demand blood-borne may for sold really We masks. was There we that are protection really of like kits, of be not We outer ago, year pathogen garments. the is oversupply masks, kits. incredible something observation. That's at an these oversupply really there do the being are some personal for good kinds kits for for selling cleanup are on

hand, aid and we first to in what area. that On safety stuck the more do other we is the is which strong and business sell, to And be. regularly continues and

Unidentified Analyst

you. Thank okay. Great,

Walter C. Johnsen

Thank you.

Operator

you Thank at Instructions]. additional this questions [Operator There time. are no

Paul G. Driscoll

We for joining if this is look us. forward thank And further questions, are call in you Goodbye. quarter's our complete. July. to sharing results next well, Okay, there no then

Operator

Thank This today's you, concludes and ladies presentation. gentlemen.

disconnect. You may now

Acme United (ACU) 19 Apr 212021 Q1 Earnings call transcript